Banco Santander, S.A. (ADR) (NYSE:SAN) Eyes Acquisitions

Denver, CO, 10/28/2013 (Avauncer.com) –Spain’s biggest bank Banco Santander, S.A. (ADR) (NYSE:SAN) posted a nine-month net profit jump by 77% to about $4.56 billion, in line with analyst predictions. Net income climbed to $1.46 billion from roughly $168 million for the same period a year ago, in line with analysts’ estimates. One of Europe’s largest banks, Banco Santander’s nine-month profit in other key markets such as Britain fell, but improved on a quarterly basis.  In addition to this, its profit from Brazil, the most significant contributor to Santander’s earnings dropped roughly to $494 million from about $733 million a year ago as net interest income plunged by nearly 29%. While earnings from Spain approximately dropped to $100 million from around $472 million a year ago, a whopping 78% drop due to net interest income declining by about 20%, profits from the U.K. also fell to $422 million from $444 million.

After several years of high levels of write-offs and reinforcement of capital, Banco Santander is said to be readying for a new period of increased profitability. Chief Executive Officer Javier Marin recently revealed the bank’s focus on cutting costs and winning higher-value corporate business to boost profitability and resurrect earnings. The Spanish bank, meanwhile, is eying a slew of acquisitions including two Spanish state-owned lenders, NCG Banco and Catalunya Banc, apart from Polish lender Bank Gospodarki Zywnosciowej S.A. and Spain’s largest consumer finance business owned by El Corte Ingles.

Banco Santander aims to buy out a 51% stake in Ingles’s lucrative profit-making unit for approximately $190 million post a regulatory approval from the European Commission and the apex banks of Spain and Portugal, and after an expectedly extraordinary dividend to the parent company Ingles.

Banco Santander’s shares were down by 0.99% on October 25, trading lower at $8.97 from its previous close of $9.06. After-hours trading on the same day saw the shares drop to $8.95, a further 0.22% dip.

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